Petrol sellers are feeling the pinch too

Mark Bradshaw ran a forecourt in Quatt, Shropshire, for more than 12 years and was the original founder of the Garage Watch Campaign.

This group has now evolved into the Forecourt Division of the Federation of Petroleum Suppliers.

He writes: "There can be little doubt that everyone is feeling the effect of high fuel prices, but it is also having a damaging effect on the people who retail it.

"Independent forecourts in particular are feeling the pinch as the cost of stocking their tanks is rising by the day and now, amidst the credit crunch, banks are urging retailers to reduce their overdrafts.

"A typical load of fuel for a forecourt would be in the region of 30,000 litres, in other words well over £30,000 worth, and most garages now have to pay for the fuel as they receive it, including the tax.

"As prices continue to rise some garage owners are receiving abuse from disgruntled drivers who mistakenly believe they must in some way be profiteering from it. The truth is that forecourts work on extremely low margins and in some cases make no more than 2.5p to 3p per litre, out of which must come credit card charges, wages and the overall running costs of the site.

"During the recent fuel shortages caused by the industrial action and subsequent close-down of the Grangemouth refinery, we once again saw how quickly the public can react to panic-buying.

"With pressures from supermarkets and extremely low profit margins, thousands of forecourts have now been forced to close, causing a loss of services to many villages and towns as garages are far more than just fuel stops.

"Many sites now go for redevelopment as they are worth more as land than they were as a filling station.

"In Shifnal, where our offices are based, planners allowed the change of use of the only filling station.

"The site, which was certainly viable, was the only filling station serving a population of over 5,000 people."